FDI Capital Has Helped The Real Estate Market To Grow Strongly

Savills Vietnam said that in the first 6 months of 2017, Vietnam continues to attract significant foreign direct investment (FDI). It is worth noting that disbursed FDI is the US $ 7.72 billion, up 6.5% over the same period last year while registered capital is the US $ 19.22 billion, up 54.8% over the same period last year.

In particular, FDI has contributed significantly to the growth of other segments of the real estate market. Both office and hotel areas show high demand and increased rental space and stable rental performance.

“These segments are becoming more attractive, and active assets are getting more attention from investors, except for new projects in prime locations in the center of the HCM City and Hanoi. However, because the capital is limited, we are seeing an increase in the value of the project in all segments.” Savills said.

The most positive signal of the FDI capital in the market is the Japanese investors in which Nishi Nippon and Hankyu cooperate with Nam Long to build the Mizuki Park residential area of 26 hectares in Binh Chanh District, HCMC. It has the total investment $ 351 million.

Son Kim Investment and Development Group (Son Kim Land) has recently called for a $ 100 million development fund for successful projects from Japanese investors. Meanwhile, the famous Japanese retail group, Aeon Mall formally joints venture with BIM Group to deploy development of Aeon’s second commercial center in Hanoi with an area of 16.7 ha, estimated total capital Invest $ 200 million.

Also in the second quarter of 2017, the real estate market has continued to witness the development of housing projects and received strong attention.

China Fortune Land Development Group has bought shares in VinaCapital’s Lotus Dai Phuoc project at the price of $ 65.3 million. Dai Phuoc Lotus is a residential area with a total area of 198.5 million hectares in Dong Nai province bordering Ho Chi Minh City.

In addition, VinaCapital’s 65% stake in Times Square (Hanoi) worth $ 41 million was transferred to Elite Capital Resources Limited.

“The increase in FDI is largely focused on the manufacturing sector and the result is the promotion of industrial infrastructure development,” Savills Vietnam said. “In May, Hemaraj Land & Development of Thailand and Cienco 4 of Vietnam officially confirmed the joint venture to set up a $ 1 billion industrial park on 3,200 hectares of land in Nghe An.”

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